The Bank Of New York Mellon Corporation · NYSE:BNY
The Bank Of New York Mellon — Q4 2024 Earnings Presentation
28 slides from The Bank Of New York Mellon's earnings presentation, Jan 15, 2025
Slide 1: 4Q24 Quarterly Update
4Q24 QUARTERLY UPDATE January 15, 2025
Slide 2: Agenda
AGENDA PAGE 1 Strategic Update 3 2 Financial Update 8 3 Financial Outlook 19 4 Appendix 22 2
Slide 3: Strong Execution Against our Three Strategic Pillars in 2024
Strong Execution Against our Three Strategic Pillars in 2024... Building on a solid foundation laid in 2023 the pace of progress on BNY's multi-year transformation accelerated in 2024 BE MORE RUN OUR POWER FOR OUR COMPANY OUR CLIENTS BETTER CULTURE • Launched new commercial coverage • Commenced the
Slide 4: Drove Continued Delivery Against our Financial Goals
…Drove Continued Delivery Against our Financial Goals Record net income of $4.3bn on record revenue of $18.6bn with four consecutive quarters of positive operating leverage in 2024 2024 FINANCIAL HIGHLIGHTS 2024 OUTLOOK 2024 RESULT • Record Financial Results: Fee Revenue Up YoY Up 6% YoY – Revenue o
Slide 5: Unlocking Opportunity in 2025
Unlocking Opportunity in 2025 Improving position to capitalize on market beta and trends while continuing to drive alpha through consistent execution of strategic priorities COMPELLING MARKET TRENDS CLEAR STRATEGIC PRIORITIES Capital Markets Commercial Model Issuance Activity, Trading Volumes and Vo
Slide 6: A Strong Value Proposition for our Clients, Shareholders and People
A Strong Value Proposition for our Clients, Shareholders and People Progress toward existing medium-term financial targets in 2024 reinforces our goal to meet or exceed targets through-the-cycle • Deliver Enhanced Commercial Model and MEDIUM-TERM FINANCIAL TARGETS BE MORE Integrated Solutions FOR OU
Slide 7: Agenda
AGENDA PAGE 1 Strategic Update 3 2 Financial Update 8 3 Financial Outlook 19 4 Appendix 22 7
Slide 8: 2024 Financial Results
2024 Financial Results 2024 vs. $mm, except per share data or unless otherwise noted 2024 2023 2023 Income Statement Investment services fees $9,419 $8,843 7% Investment management and performance fees 3,139 3,058 3 Foreign exchange revenue 688 631 9 Other fee revenue 374 340 10 Total fee revenue $1
Slide 9: 2024 Financial Highlights
2024 Financial Highlights • Revenue Growth: Revenue of $18.6bn up 5% YoY – Investment services fees up 7% YoY Revenue: + 5% – Investment management and performance fees up 3% YoY – Foreign exchange revenue up 9% YoY – Net interest income down 1% YoY Adj. Expenses(a): + 1% • Expense Discipline: Expen
Slide 10: 4Q24 Financial Results
4Q24 Financial Results 4Q24 vs. $mm, except per share data or unless otherwise noted 4Q24 3Q24 4Q23 3Q24 4Q23 Income Statement Investment services fees $2,438 $2,344 $2,242 4% 9% Investment management and performance fees 808 794 743 2 9 Foreign exchange revenue 177 175 143 1 24 Other fee revenue 90
Slide 11: 4Q24 Financial Highlights
4Q24 Financial Highlights • Revenue Growth: Revenue of $4.8bn up 11% YoY – Investment services fees up 9% YoY Revenue: + 11% – Investment management and performance fees up 9% YoY – Foreign exchange revenue up 24% YoY – Net interest income up 8% YoY Adj. Expenses(a): + 2% • Expense Discipline: Expen
Slide 12: Capital and Liquidity
Capital and Liquidity 4Q24 3Q24 4Q23 Consolidated regulatory capital ratios (a) CAPITAL Tier 1 capital ($mm) $23,034 $23,972 $22,863 • Tier 1 leverage ratio of 5.7% down 29 bps QoQ Average assets for Tier 1 leverage ratio ($mm) 402,064 398,381 383,705 Tier 1 leverage ratio 5.7% 6.0% 6.0% – Tier 1 ca
Slide 13: Net Interest Income and Balance Sheet Trends
Net Interest Income and Balance Sheet Trends Net Interest Income ($mm) • Net interest income of $1,194mm up 8% YoY and up 14% QoQ 1,194 1,101 – QoQ increase primarily reflecting the reinvestment of maturing investment 1,040 1,030 1,048 securities at higher yields, partially offset by deposit margin
Slide 14: Securities Services
Securities Services Select Income Statement Data 4Q24 vs. • Total revenue of $2,324mm up 7% YoY $mm, unless otherwise noted 4Q24 3Q24 4Q23 – Investment services fees up 6% YoY Asset Servicing $1,042 2% 7% Issuer Services 295 4 4 > Asset Servicing up 7% YoY, primarily Total investment services fees $
Slide 15: Market and Wealth Services
Market and Wealth Services Select Income Statement Data 4Q24 vs. • Total revenue of $1,667mm up 11% YoY $mm, unless otherwise noted 4Q24 3Q24 4Q23 – Investment services fees up 12% YoY Pershing $516 9% 9% Treasury Services 206 3 15 > Pershing up 9% YoY, primarily reflecting Clearance and Collateral
Slide 16: Investment and Wealth Management
Investment and Wealth Management Select Income Statement Data 4Q24 vs. • Total revenue of $873mm up 29% YoY $mm, unless otherwise noted 4Q24 3Q24 4Q23 – Investment Management up 41% YoY, Investment management fees $789 1% 9% primarily reflecting the 4Q23 reduction in the Performance fees 20 N/M N/M
Slide 17: Other Segment
Other Segment Select Income Statement Data • Total revenue includes corporate treasury and $mm, unless otherwise noted 4Q24 3Q24 4Q23 other investment activity, including hedging Fee revenue $(20) $(1) $(17) activity which has an offsetting impact between Investment and other revenue 9 55 38 fee and
Slide 18: Agenda
AGENDA PAGE 1 Strategic Update 3 2 Financial Update 8 3 Financial Outlook 19 4 Appendix 22 18
Slide 19: 2025 Financial Outlook
2025 Financial Outlook Positioned for higher organic growth and continued capital returns while remaining focused on driving positive operating leverage 2024 BASIS 2025 OUTLOOK KEY ASSUMPTIONS (a) • Market-implied forward interest rates Net Interest Income $4.3bn Up Mid-Single-Digits % YoY • Higher
Slide 20: Medium-term Financial Targets
Medium-term Financial Targets Progress toward existing medium-term financial targets in 2024 reinforces our goal to meet or exceed targets through-the-cycle FIRMWIDE MEDIUM-TERM FINANCIAL TARGETS ≥ 33% ≥ 23% 5.5 - 6% ~11% Pre-tax Margin ROTCE(a) Tier 1 Leverage Ratio CET1 Ratio SECURITIES SERVICES M
Slide 21: Agenda
AGENDA PAGE 1 Strategic Update 3 2 Financial Update 8 3 Financial Outlook 19 4 Appendix 22 21
Slide 22: BNY Platforms Operating Model
BNY Platforms Operating Model Over the course of 2025 ~60% of BNY’s employees planned to transition to a new way of working WHY change the way we work? • Aligning ourselves to our role as a financial services platform company • FOR OUR CLIENTS: Enable more intuitive client journeys, streamline servi
Slide 23: Footnotes
Footnotes Page 12 – Capital and Liquidity (a) Regulatory capital and liquidity ratios for December 31, 2024 are preliminary. For our CET1 ratio, our effective capital ratios under the U.S. capital rules are the lower of the ratios as calculated under the Standardized and Advanced Approaches, which f
Slide 24: Reconciliation of Non-GAAP Measures – Impact of Notable Items
Reconciliation of Non-GAAP Measures – Impact of Notable Items 4Q24 vs. 2024 vs. $mm, except per share amounts 4Q24 3Q24 4Q23 3Q24 4Q23 2024 2023 2023 Total revenue – GAAP $4,847 $4,648 $4,358 4% 11% $18,619 $17,697 5% Less: Reduction in the fair value of a contingent consideration receivable(a) — —
Slide 25: Return on Common Equity and Tangible Common Equity Reconciliation
Return on Common Equity and Tangible Common Equity Reconciliation $mm 4Q24 3Q24 4Q23 2024 2023 Net income applicable to common shareholders of The Bank of New York Mellon Corporation – GAAP $1,130 $1,110 $162 $4,336 $3,067 Add: Amortization of intangible assets 13 12 14 50 57 Less: Tax impact of amo
Slide 26: Reconciliation of Non-GAAP Measures – Investment Management
Reconciliation of Non-GAAP Measures – Impact of Notable Items – Investment Management 4Q24 vs. $mm 4Q24 4Q23 4Q23 Total revenue – GAAP $585 $415 41% Less: Reduction in the fair value of a contingent consideration receivable(a) — (144) Adjusted total revenue, ex-notables — Non-GAAP $585 $559 5% Recon
Slide 27: Cautionary Statement
Cautionary Statement A number of statements in our presentations, the accompanying slides and the responses to questions on our conference call discussing our quarterly results may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, inc
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